From 2026, Spain’s notorious Tax Agency will have sweeping new spying powers. This includes the ability to monitor bank balances and cash movement.

The Spanish tax agency will be given new broad powers to monitor bank accounts in the country from 2026 – The government has launched a new crackdown against tax fraud and money laundering.

Banks will have to report their account holders’ balances, deposits and withdrawals as well as all digital and card payments, starting January 1, 2019.

Payments made with credit or debit cards, virtual and prepaid cards, mobile apps like Bizum and other electronic platforms are included.

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Before 2026, banks in Spain were required to report only certain large transactions, loans, or cash movements to the tax authorities – and account summaries were submitted once a year.

According to authorities, many small payments and routine card transactions go unreported.

But under the new rules, banks will generally report this information monthly rather than annually – and in far greater detail than ever before.

Both individuals and businesses are subject to the regulation, but reporting requirements differ.

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All professionals, freelancers and companies are required to report any payment received via cards or digital platforms.

Ordinary account holders, however, will only be included if the sum of their annual card payments and charges exceeds €25,000 – or if they make significant cash deposits or withdrawals.

Banks will also be required to report loans and credits issued to all account holders, as well as all cash transactions exceeding €3,000.

The authorities took the decision after they identified inconsistencies in their previous reporting systems that allowed them to say some transactions and income went unreported.

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Between 2016 and 2021, Spain lost roughly €31?billion in corporate tax to “fiscal engineering,”, El Pais reported.

In 2022 alone, the government failed to collect around €4.5?billion due to fraud, evasion, or errors, data has also shown.

But last year, the Agencia Tributaria recovered nearly €19?billion through roughly 2 million inspections – a 13% increase compared with 2023, marking a decisive step toward stricter oversight.

The latest regulation, which came into force in April this year, further tightens the Agencia Tributaria’s control over the country’s finances – in a move the government hopes will unlock previously untapped sources of revenue.

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